Money & Banking

Economy needs the support of PSBs, says Union Bank chief

PTI Kolkata | Updated on May 29, 2020 Published on May 29, 2020

The country’s economy, which has been hit by the Covid-19 outbreak, needs support from the public sector banks (PSBs) to boost credit growth, said an official on Friday.

The number of PSBs has come down after amalgamation of several lenders, and their ability to lend has increased manifold, said Union Bank of India MD and CEO Rajkiran Rai G.

He said the lenders will be able to meet the expectations of the business community. Speaking at a webinar session organised by the BCCI, Rai said there will be a shift of credit growth in favour of the PSBs, adding that depositors will expect an interest rate of 5.5 per cent.

According to him, the issues of the depositors cannot be overlooked, and more stress will have to be given on the liability side to retain customers.

Kotak Mahindra Bank whole-time director and president Gaurang Shah said the retail, a low-cost liability base, is key sustenance factor of the banks.

Ajay Kanwal, MD and CEO of Jana Small Finance Bank, said around 65 per cent of micro-finance borrowers felt the Covid-19 impact to a large extent. He said customers at the bottom of the pyramid are most vulnerable and the right kind of support should be extended to them.

Published on May 29, 2020
This article is closed for comments.
Please Email the Editor